It's not a rumor, it's confirmed.

Retail-wide price drop:

http://biz.gamedaily.com/industry/feature/?id=16721

It wasn't clear at first if this ad was a special deal specific to the electronics retailer or if it's indeed a retail-wide price cut instituted by Sony Computer Entertainment America (SCEA). As it turns out, a merchandising manager (who wished to remain anonymous) at one of the world's biggest retailers has confirmed to GameDaily BIZ that the price drop is indeed retail-wide and it's scheduled to take place on July 12, although the first wave of ads to promote the PS3's new price won't kick in until Sunday, July 15.

The 12th is one day after the Sony E3 press conference.

They are going to announce a price cut at E3 as predicted by some and it will take effect the next day.

This is good news then, maybe the ps3 can actually sell better.

Wow, good move Sony :)

i think this changes alot of things... august and september.could be the 1st months ps3 and 360 sales are neck and neck in america... the reason i say august and sep. is because thats when the games start rolling out....

does anyone think microsoft or nintendo will react??? i think Microsoft will react for sure... but i dont think they will lower the price of all their sku's

thats it i guess , ps wins again..

Riiiiight. That's why 93% of the world's computers run on American software (MS).

"
thats it i guess , ps wins again.."

Umm what? A price drop doesnt mean that ps3 start flying off the shelves like crazy. The system is still very expensive, it may start selling better then it has with a permanent price cut but that has yet to be seen. I think a lower price may move more units however in japan the price is low and there not selling so hot there.

However there is a plus to a lower ps3 and that means maybe the xbox360 will lower there price.

This just increases the rumored (and very likely) $50 - $100 price drop in November lol. A $399 would be awesome.

$600 >> $500, doesn't look like much
$400 >> $300, looks like a lot
$250 >> $150, hell ya

if MS follows with a $100 price cut...